HSBC has pushed its cheapest fixed-rate mortgages back above 5 per cent, and the HSBC mortgage rate rise that took effect on 23 September 2026 also reaches into parts of the bank’s buy-to-let range. For landlords with fixes rolling off, the window to lock in a sub-5 per cent deal is closing quickly.
The bank’s cheapest two-year fix has moved from 4.76 per cent to 5.04 per cent, while its lowest five-year rate has climbed from 4.72 per cent to 5.06 per cent. Brokers expect more of the same while wholesale funding costs stay high.
Why the HSBC mortgage rate rise matters for landlords
The repricing follows several weeks of increases across the mortgage market, as higher wholesale funding costs have pushed lenders to withdraw or reprice some of their keenest products.
It is a marked reversal from earlier in the year, when major lenders were competing to cut mortgage rates.
HSBC confirmed the changes apply across a number of its residential and buy-to-let mortgages, so landlords refinancing with the bank will feel the effect alongside homeowners. The increase in the cheapest fixes works out at 0.28 percentage points on the two-year deal and 0.34 percentage points on the five-year.
Brokers warn of same-day decisions
Tracey Dixon, buy-to-let mortgage specialist and owner of Cardiff-based Pure Mortgage and Protection, said lenders giving less than 24 hours’ warning of increases had left borrowers, brokers and solicitors scrambling.
“I have recently had to ask clients to make same-day decisions simply to avoid losing an affordable deal,” she said.
“HSBC’s latest increase is another reminder that fixed mortgage rates can move regardless of whether Bank Rate changes. Borrowers approaching the end of a deal should start reviewing their options early, because in this market, waiting even one day can mean paying more.”
Her point is that fixed-rate pricing can shift sharply without any change to the Bank of England’s Bank Rate.
Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice, said another competitive sub-5 per cent option now appeared to be heading out of the market.
“Less than 24 hours’ notice, and another sub-5 per cent option heads for the exit. The 4.76 per cent two-year and 4.72 per cent five-year fixes were among the last genuinely sharp deals on the shelf, and borrowers are now being asked to make same-day decisions on 25-year commitments,” he said.
Swap rates steady, but no sign of relief
Aaron Strutt, product and communications director at London-based Trinity Financial, said further increases could arrive before the end of the week beginning 21 September 2026.
“Rates are still getting more expensive, but the swap market seems to have stabilised a bit because there have been a couple of mortgage rate reductions,” he said.
“The mortgage market is still very active, particularly with borrowers keen to secure a rate quickly to avoid paying more than necessary. There may well be more rate hikes this week.”
Adam Stiles, managing director at London-based Helix Financial Partners, was blunter. “Rate hikes are going to keep happening until the market volatility stabilises. Unfortunately, the volatility is currently showing no signs of abating.”
“We expect to see more rate hikes for the foreseeable future, and hope we see some calm as soon as possible,” he added.
Karpowicz was equally downbeat about the outlook. “The frustrating part is that nobody can point to anything on the horizon suggesting this reverses soon. Swap rates have steadied slightly, but that is hardly a recovery.”
“If your deal ends within six months, start reviewing now. In this market, waiting a day costs you money.”
Babek Ismayil, founder and chief executive of OneDome, saw a silver lining on the buying side, albeit for first-time buyers. “Conditions for first-time buyers (FTBs) may be challenging at present in the mortgage market, but in the property market they are very favourable, as they are in a position to negotiate very hard on price.”
What this means for investors
For landlords, the arithmetic is unforgiving. Every step up in fixed-rate pricing feeds straight into monthly costs and lender stress tests, and with rental growth forecast to cool, there is less room to pass the cost on to tenants.
Portfolio owners refinancing several properties at once, including the growing number of landlords buying through limited companies, face the sharpest exposure, since each repricing multiplies across the book.
Until swap rates show a sustained fall, the risk sits with those who wait. Landlords with fixes ending in the next six months should have a broker comparing options now, with paperwork ready to move the moment a suitable deal appears, because the consensus among advisers is that the next repricing could be days rather than weeks away.
